• Bitcoin nears oversold territory; potential retracement to $60K predicted.
  • Mixed indicators suggest an uncertain trajectory; whales signal cautious market optimism.

Bitcoin [BTC], the leading cryptocurrency, has grappled with bearish market conditions over the past week. Trading at $94,805, BTC has declined by 2% in the past 24 hours, trading volumes surged by 6%. Over the last seven days, Bitcoin has shed 4% of its value, following its recent drop below the critical $92,200 support level eight days ago. 

Notably, BTC is currently 13% lower than its all-time high of $108,268, achieved just 11 days prior.

Is Bitcoin Heading for a Major Price Correction? image 0 BTC price Chart, Source: Sanbase

The daily Relative Strength Index ( RSI ) stands at 44, signaling that BTC is nearing an oversold state. Analysts have noted the possibility of further declines, with some projecting a potential retracement toward the $60,000 mark. A prominent crypto analyst highlighted on-chain data suggesting open air below $93,806, potentially paving the way for a drop to $70,085.

Moreover, Peter Brandt, a seasoned chart analyst, identified the formation of a broadening triangle pattern that could lead to a breakdown, reinforcing predictions of a correction to $70,000. Additionally, the Pi Cycle Top indicator places Bitcoin’s market bottom at $78,000, with a potential market top near $132,000.

Can Traders Still Trust Bitcoin Bulls?

Despite the prevailing bearish sentiment, there are hints of bullish activity. The Chaikin Money Flow (CMF) metric showed a slight uptick, indicating increased buying pressure. Meanwhile, the TD Sequential indicator on the hourly chart flashed a buy signal, hinting at a potential rebound.

Market sentiment remains neutral, as per the Fear and Greed Index, leaving room for BTC to move in either direction. Adding to the mixed outlook, Santiment reported that Bitcoin whales are depositing stablecoins into exchanges, a potential indicator of market confidence.

While Bitcoin’s near-term trajectory remains uncertain, traders and investors continue to monitor key support levels and market dynamics for signs of a reversal or further decline.

Disclaimer: This article does not constitute financial advice. Readers are encouraged to conduct thorough research before making investment decisions.

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